The Facts about Bad Credit Car Loans

What you need to know about Bad Credit Car Loans and the effects of a Low Credit Score

If your credit is bad, you need to get your car loan approved first, and choose your car second

Some may say, if your credit is bad, don't buy a car until you cleanup your finances. If you find yourself in a situation where you really need a car and your credit is not great there are some things to keep in mind. People forget that buying a car is a privilege, not a God given right.

Get your loan Pre-Approved first so you are clear about how much money a lender will give you, the interest rates being charged and the terms and conditions of the loan. Once you have this information and you can determine a comfortable monthly payment for you and begin the shopping process.

For example: You want a new minivan as your family has grown but you have some credit issues. You get pre-approved for a loan over 5 years at 12% interest with a monthly payment of $350. Now you select the minivan that meets the budget, not the other way around as is usually the case.

Bad Effect Of Low Credit Scores on your new car financing

Your credit score determines your new car loan approval and your car loan APR. If you have bad credit and your Beacon score is low, you'll pay high car loan interest rates, up to 29%, with a bad credit auto loan. Major Banks will reject you if you have disputed items on your credit report, until it is resolved.

We have lenders that will approve you regardless of items in dispute on your credit report.

Don't Forget Auto Insurance

You'll be surprised how much some new cars cost to insure. Get your auto insurance quotes before you buy a car, and plan your budget to include insurance. Insurance payments are part of your monthly cost of ownership.